AMHERST - The biotech industry is blossoming across the state and in the Valley's own backyard.

The Pioneer Valley Life Sciences Institute, a joint venture by the University of Massachusetts Amherst and the Baystate Medical Center, is winning grants, carving out a national niche and expanding its facility.

"It's limitless what we can do," said Lawrence M. Schwartz, the institute's science director. "We're getting really strong support."

The seven-year-old Pioneer Valley Life Sciences Institute conducts medical research on subjects that include breast cancer, diabetes, metabolic disorders and regulation of the life cycle of cells.

PVLSI is now in the design phase to launch a $10 million expansion of its Springfield building, creating incubator space for 8- to 10 biological technology businesses. The expansion could be ready for its first tenant by June 2010, Schwartz said.

The institute will also receive funding through the $787 billion federal stimulus plan. PVLSI will receive $571,000 for medical equipment and facilities and $475,000 for research at the institute.

Since its inception PVLSI has also emerged as a national center for noncancerous breast tissue testing.

"Other institutes come to us saying we have one of the best facilities for looking at normal mammary tissues and seeing how they respond to hormonal regimens" meant to test the ability of scientists to prevent breast cancer in women prone to the disease, Schwartz said. Researchers "have really carved out a niche for themselves on a national scale."

Schwartz said he sees the Massachusetts biotech industry as a major player in pulling the state out of the recession and he would like to see PVLSI aid the state in that economic healing.

"I think biotech is going to be one of the key things to help pull the economy forward," Schwartz said.